Australia ensures that firms in the country do not pay foreign workers less than domestic workers for equivalent work. To ensure this, income thresholds are updated annually to ensure fair remuneration for abroad skilled workers.
The Australian government has announced new wage standards for overseas workers effective July 1, 2025, by salary indexation revisions that take effect on July 1st of each year.
If a foreign worker applies for a sponsorship or files a nomination application on or after this date, they must meet the relevant income threshold for that year. New nomination applications from 1 July 2025 must meet the new relevant income threshold or the annual market salary rate, whichever is higher. However, this change will not apply to existing visa holders and nominations lodged before 1 July 2025.
From 1 July 2025, skilled visa income thresholds will be increased by 4.6%. This is in line with changes to the annual Average Weekly Ordinary Time Earnings (AWOTE).
Income thresholds are indexed annually so wages for skilled migrants increase at the same rate as Australian workers. This ensures that people cannot use skilled migration to undercut Australian workers.
From 1 July 2025, indexation changes will be as follows:
Core Skills Income Threshold
The Core Skills Income Threshold (CSIT) will increase from AUD73,150 to AUD76,515. This will impact nomination applications for the Core Skills stream of the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme visa (subclass 186).
Annual earnings for Skills in Demand visa (SID) (subclass 482) applications in the Core Skills stream and Employer Nomination Scheme (ENS) (subclass 186) nominations lodged on or after 7 December 2024 must meet the Core Skills Income Threshold (CSIT). Currently, for ENS and SID Core Skills Stream nomination applications lodged between 7 December 2024 to 30 June 2025, the CSIT is AUD73,150.
Specialist Skills Income Threshold
The Specialist Skills Income Threshold (SSIT) will increase from AUD135,000 to AUD141,210. This will impact nomination applications for the Specialist Skills stream of the Skills in Demand visa (subclass 482).
Annual earnings for Skills in Demand visa (SID) (subclass 482) applications in the Specialist Skills stream must meet the Specialist Skills Income Threshold (SSIT). Currently, for SID Specialist Skills Stream nomination applications lodged between 7 December 2024 to 30 June 2025, the SSIT is AUD135,000.
Temporary Skilled Migration Income Threshold
The Temporary Skilled Migration Income Threshold (TSMIT) used for the Skilled Employer Sponsored Regional visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187) will increase from AUD73,150 to AUD76,515. Currently, the TSMIT for Nomination applications are AUD73,150 for Nomination applications lodged on and between 1 July 2024 and 30 June 2025.
The Temporary Skilled Migration Income Thresholds (TSMIT) is used to assess the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187). Annual earnings for these applications must meet the TSMIT.
Employers who wish to nominate workers for subclass 482, 494, 186 and 187 must meet certain requirements. If you will pay the overseas worker an annual salary less than AUD250,000, you must show that:
- You have determined the annual market salary rate (AMSR) correctly,
- You will not pay the overseas worker less than the AMSR, that is, less than an Australian worker would be paid,
- Both the AMSR and the overseas worker’s pay, excluding non-monetary benefits, is no less than the relevant income threshold.